Victoria Company has the following account balances on December 31, 2019, prior to any adjustments:

Additional adjustment information: (a) depreciation on buildings, $1,100; on equipment, $600; (b) bad debts expense, $240; (c) interest accumulated but not paid: on note payable, $50; on mortgage payable, $530 (this interest is due during the next accounting period); (d) insurance expired, $175; (e) salaries accrued but not paid $370; (f) rent was collected in advance and the performance obligation is now satisfied, $800; (g) office supplies on hand at year-end, $230 (expensed when originally purchased earlier in the year); and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2020.

Required:

1. Transfer the account balances to a 10-column worksheet and prepare a trial balance.

2. Prepare the adjusting entries in the general journal and complete the worksheet.

3. Prepare the company’s income statement, retained earnings statement, and balance sheet.

4. Prepare closing entries in the general journal.

Debit Credit Debit Credit Cash Accounts Receivable $1,900 4,700 Unearned Rent Mortgage Payable (due $ 60 $ 1,200 January 1, 2021) Common Stock (2,000 shares) 7,300 10,000 18,075 Allowance for Doubiful Accounts Inventory Prepaid Insurance Land Buildings Accumulated Depreciation: Buildings Equipment Accumulated Depreciation: Equipment Accounts Payable Notes Payable (due March 1, 2020) 8,700 600 4,100 38,000 Retained Earnings (lanuary 1, 2019) $ 1,300 Dividends Sales Revenue Cost of Goods Sold 49,355 27,185 4,080 2,000 770 1,275 980 11,500 Salaries Expense Unlities Expense Office Supplies Expense 10,700 3,100 Delivery Expense 4,300 1,400 Other Expenses